I think the name SOUNDS lovely and it conjures up an image of, well, a gypsy - in floaty lacey clothes, big brown eyse and gold hoop earrings. Which is a nice image for me. Sadly, other people might not see it that way, and for that reason i'd not use it.

I used to know a Jack Russell Terrier named Gypsy, she was a lovely little cantankerous thing. Unfortunately I think it's not a great name for a child; my parents were boho hippies in the 1970s and I would HATE it if my name reflected that, as I'm the least boho person you could imagine.

Very un PC (or 'offensive', if you'd prefer a different word). Gypsy and Traveller communities still face huge and devastating prejudice in the UK and Europe today, and the storybook idea of a gypsy bears little resemblance to people's actual lived experience. Sorry :/

Not keen. Delivered one once, back in my maternity days - was glad of my professional "oh how lovely" responses. Love your other DC names, and there are so many beautiful Irish/Celtic girls names you could use.